Canada saw a surge of 75,000 new jobs in July, marking a 0.4% increase and driving the unemployment rate down to 6.4%, the lowest in two years. The latest report from Statistics Canada revealed significant job gains in both full-time and part-time positions, particularly in the wholesale and retail trade sector which added 21,000 new jobs.
The employment growth was most notable among individuals aged 25 to 54, showing a positive trend for women in that age group. While the unemployment rate remained steady at 5.8% for men aged 25 to 54, it decreased to 5.2% for women in the same demographic.
Ontario led the provinces in job creation, adding 52,000 new jobs in July, primarily in the professional, scientific, and technical services industry. British Columbia also experienced a notable increase, with 18,000 new jobs added to its economy.
Manitoba and Nova Scotia saw their employment rates rise by 0.8%, resulting in the addition of 5,900 and 4,600 new jobs, respectively. Statistics Canada reported that the country has seen a total increase of 181,000 jobs since April and 196,000 from the previous year. July’s employment boost builds on the positive momentum observed in May and June.
CIBC senior economist Andrew Grantham praised the job numbers, stating that the growth exceeded expectations due to robust hiring in July. He highlighted the strength of the student summer job market, emphasizing that the unemployment rate for young people aged 15 to 24 is at its lowest level since early 2024.
Despite the overall positive outlook, Grantham noted that Canada’s unemployment rate, while at a two-year low of 6.4%, still falls short of what is considered full employment. BMO chief economist Douglas Porter echoed this sentiment, pointing out that while job gains have helped reduce the jobless rate, average hourly wage increases have slowed to 2.8% year over year.
Looking ahead, economists are cautiously optimistic about the job market’s stability, with businesses adapting to trade-related uncertainties. However, looming tariffs, such as the proposed 50% tariffs on Canadian imports by U.S. President Donald Trump, could potentially impact Canada’s economic gains. Negotiations on trade agreements, including the Canada-United States-Mexico Agreement, are set to resume in the coming months.